FX.co ★ Colombia Holds Rate at 9.25%

The Central Bank of Colombia decided to keep its benchmark policy rate steady at 9.25% in June 2025. This decision came after a vote where four directors supported maintaining the rate, while two favored a 50 basis point reduction, and one advocated for a 25 basis point cut. There was a slight decrease in annual inflation, which eased to 5.1% in May, down from 5.2% in April. Similarly, core inflation, excluding food and regulated prices, also softened, dropping to 4.8% from 4.9%. Economic activity indicators from the first quarter suggest that the GDP experienced a 2.7% year-on-year growth. As a result, the technical team has adjusted its growth forecast for 2025 to 2.7%, and 3.0% for 2026. Nonetheless, the global financial environment remains constrained by high geopolitical tensions and ongoing uncertainty surrounding U.S. tariff policies, which limits the potential for significant rate cuts. The Board stressed that future policy decisions will be guided by available information.